Navigating non-payment in agricultural product exports to Russia can be a complex and challenging process. Understanding the recovery system for agricultural product exports to Russia is essential for companies dealing with non-payment issues. The recovery system consists of three phases, each with its own set of procedures and considerations. Here’s a breakdown of the recovery system and key takeaways to keep in mind.
Key Takeaways
- The recovery system for agricultural product exports to Russia involves a three-phase process, including initial recovery, legal intervention, and decision making with rates.
- Phase One of the recovery process includes sending letters to debtors, skip-tracing, and daily attempts to contact debtors for resolution.
- Phase Two involves forwarding the case to affiliated attorneys, drafting letters demanding payment, and further attempts to reach a conclusion.
- In Phase Three, companies have the option to close the case if recovery is not likely, proceed with legal action at their own cost, or continue standard collection activities.
- The rates for the recovery system depend on the number of claims submitted and the age and amount of the accounts, with competitive collection rates tailored to specific criteria.
Understanding the Recovery System for Agricultural Product Exports to Russia
Phase One: Initial Recovery Process
As we dive into the initial recovery process, our actions are swift and systematic. Within the first 24 hours, we launch a multi-pronged approach to engage the debtor. Our strategy includes:
- Sending the first of four letters via US Mail.
- Employing skip-tracing and investigative techniques to gather the best financial and contact information.
- Initiating contact through phone calls, emails, text messages, and faxes.
Our collectors are relentless, making daily attempts to reach a resolution within the first 30 to 60 days. If these efforts don’t yield results, we seamlessly transition to Phase Two, involving legal intervention.
Our commitment is to persevere until we achieve a resolution. Should the need arise to escalate the matter, we are prepared to take the necessary legal steps to protect your interests.
Phase Two: Legal Intervention
Once we’ve exhausted initial recovery efforts, we escalate to legal intervention. Our affiliated attorneys, well-versed in the nuances of Russian agricultural export laws, take the helm. They draft demand letters and relentlessly pursue contact with the debtor through calls and written correspondence.
At this juncture, we’re playing hardball. The debtor is made acutely aware of the seriousness of their non-payment.
If these intensified efforts don’t yield results, we’re at a crossroads. We’ll provide you with a detailed report outlining the situation and our suggested course of action. Here’s what you can expect:
- A comprehensive assessment of the debtor’s assets and the likelihood of recovery.
- A recommendation on whether to proceed with litigation or close the case.
Should litigation be the advised path, be prepared for upfront legal costs. These typically range from $600 to $700, depending on the jurisdiction. It’s a calculated risk, but one that could lead to full recovery of your dues. Below is a breakdown of our rates for legal action:
| Claims Quantity | Accounts < 1 Year | Accounts > 1 Year | Accounts < $1000 | Attorney Placed Accounts |
|---|---|---|---|---|
| 1-9 | 30% | 40% | 50% | 50% |
| 10+ | 27% | 35% | 40% | 50% |
Remember, if litigation doesn’t pan out, you owe us nothing further. We shoulder the risk with you.
Phase Three: Decision Making and Rates
At this juncture, we’re faced with a critical choice. If the debtor’s assets and case facts suggest low recovery odds, we’ll advise case closure—at no cost to you. Conversely, should litigation seem viable, the ball’s in your court. Opting out incurs no fees, but pursuing legal action necessitates upfront costs, typically $600-$700, depending on jurisdiction.
Litigation is a gamble, but we’re equipped to file for all dues, including filing costs. A failed litigation attempt? You owe us nothing. It’s a clean slate.
Our rates are competitive, structured to the volume of claims within the first week of the initial account placement:
| Claims Submitted | Accounts < 1 Year | Accounts > 1 Year | Accounts < $1000 | Attorney Placed |
|---|---|---|---|---|
| 1-9 | 30% | 40% | 50% | 50% |
| 10+ | 27% | 35% | 40% | 50% |
Deciding to litigate is not just about the potential to recover funds; it’s about weighing the financial risks against the likelihood of success.
Frequently Asked Questions
What is the recovery system for agricultural product exports to Russia?
The recovery system for agricultural product exports to Russia consists of three phases: Phase One involves initial recovery processes, Phase Two involves legal intervention, and Phase Three involves decision making and rates for recovery.
What happens in Phase One of the recovery system?
Phase One of the recovery system includes sending letters to the debtor, skip-tracing and investigation, and attempts to contact the debtor for resolution using various methods such as phone calls, emails, text messages, and faxes.
What is the process in Phase Two of the recovery system?
Phase Two involves forwarding the case to an affiliated attorney within the debtor’s jurisdiction, drafting demand letters, and making attempts to contact the debtor via telephone and letters. If no resolution is reached, further recommendations are provided.
What are the recommendations in Phase Three of the recovery system?
Phase Three offers two recommendations: closure of the case if recovery is not likely or proceeding with legal action. If legal action is chosen, upfront legal costs such as court fees are required, and the affiliated attorney will file a lawsuit on behalf of the creditor.
What are the rates for recovery in agricultural product exports to Russia?
The rates for recovery depend on the number of claims submitted within the first week of placing the first account. Rates vary based on the age and amount of the account, with different percentages for accounts placed with an attorney.
What happens if attempts to collect via litigation fail?
If attempts to collect via litigation fail, the case will be closed, and the creditor will owe nothing to the firm or the affiliated attorney.
